Competition authority fines Auchan, Modelo Continente, Pingo Doce and Beiersdorf of €19.5 million

The Competition Authority (AdC) has fined Auchan, Modelo Continente, Pingo Doce, Beiersdorf and a representative of this company a global fine of almost 19.5 million euros for participating in a price agreement.

“AdC has sanctioned three supermarket chains – Auchan, Modelo Continente (Sonae group) and Pingo Doce (Jerónimo Martins group) – as well as the joint supplier of personal hygiene and cosmetic products Beiersdorf and a person responsible for this company, for participating in a consumer sales price arrangement (PVP) for that supplier’s products”said in a statement.

The total fine was 19,469,276 euros, with the highest amount for the person responsible for Beiersdorf (9,276.80 euros).

Modelo Continente was fined 7,520,000 euros, followed by Pingo Doce (4,880,000 euros), Beiersdorf (4,400,000 euros) and Auchan (2,660,000 euros).

According to the same note, the investigation made it possible to establish that the distribution companies carried out “retail price matching” in supermarkets, through the contacts established through the common supplier, and thus constituted a conspiracy “equivalent to a cartel”. referred to as ‘hub-and-spoke’ in competition law.

The AdC stressed that this practice “eliminates competition” and deprives consumers of the opportunity to get better prices, while providing better profitability for distribution.

“In December 2020, the AdC issued the illegality notice in relation to this matter, and subsequently gave all companies the opportunity to exercise their rights of hearing and defense, which was duly considered in the final decision”detailed.

The competition revealed that the practice lasted between 2011 and 2017 and involved Beiersdorf products such as deodorants, sunscreens, lip balms and face creams.

Since 2017, when the search and seizure proceedings became widespread, the AdC has sanctioned six supermarket chains and eight suppliers for the “hub-and-spoke” practice.

In total, the convictions handed down between 2020 and 2022 amounted to more than 664 million euros.

The fines are determined by the turnover of the companies in the markets affected by the practices.

Pingo Doce considers fines “unfair” and will challenge it

Pingo Doce ruled Monday that the fine imposed by the Competition Authority (AdC) for participating in a price agreement is “unjustified and unjust” and will therefore appeal to the court.

“Pingo Doce confirms that it has received another decision from the Competition Authority to impose a fine, under the previous one. This decision is also unfair and undeserved and will therefore, like the previous one, be challenged before the courts for the truth of the facts,” he said in response to Lusa.

The company’s official source also said that nothing will stop Pingo Doce from “continuing to offer the Portuguese the biggest discounts and the best pricing and promotion opportunities”.

Auchan refutes practices and appeals to court

Auchan Retail Portugal on Monday refuted the practices attributed to it by the Competition Authority (AdC), which served as the basis for imposing a fine of 2.7 million euros, and told Lusa that it will appeal to the court.

“Auchan completely refutes the practices attributed to it by the Competition Authority in the final decision in the context of the administrative violation,” he replied to Lusa, guaranteeing that he will appeal to the court.

The official source of Auchan Retail Portugal also emphasized that the company internally takes care of the training and monitoring processes of employees to avoid “any kind of behavior that could lead to infringement of the competition rules”.

Modelo Continente rejects fine and appeals to court

Modelo Continente this Monday rejected the fine imposed by the Competition Authority (AdC), whose decision labeled it “wrong and unfounded” and assured Lusa that it will resort to the courts to defend its reputation and values.

“MC absolutely rejects this sentencing decision, manifestly false and unfounded, and rejects the allegation of its subsidiary’s involvement in an agreement or price matching, to the detriment of consumers, as well as the imposition of a fine,” he defended. , in response to Lusa.

The company assured that it will appeal the decision in court and will use “all available means” to clarify the facts, defend its reputation and affirm its values.

According to MC, the allegations in question “have no connection with the reality of the Portuguese market, and are contradicted by the evidence of the facts, by the highly competitive nature of the large distribution sector in Portugal and by the value transferred to the final consumer over the years”.

On the other hand, it noted that, “in strict compliance with the law”, it has been at the “vanguard of market trends” in Portugal, considering itself as “a pioneer in concepts, innovation, services and sales channels”, anticipating customers needs.